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Use Table 14.1. Shelf space in the grocery business is a valuable asset. Every good supermarket spends a significant amount of effort attempting to determine

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Use Table 14.1. Shelf space in the grocery business is a valuable asset. Every good supermarket spends a significant amount of effort attempting to determine the optimal shelf space allocation across products. Many factors are relevant to this decision: the profitability of each product, the size of each product, the demand characteristics of each product, etc. Southern Fresh sells Jalapeno Spicy Hot Bull corn chips, a local favorite. Daily demand for this product is normally distributed with a mean of 37 bags. Replenishment orders are made daily and are received 1 day later. The standard deviation of demand over (L+1) periods is 2.7203 bags. (Round your answer to 1 decimal place. Use the Normal distribution and Table 14.1. Use the round-up rule with Table 14.1.) a. Suppose an order-up-to level of 10 is used. What is the expected on-hand inventory? (Round your answer to 1 decimal place. Use the Normal distribution.) b. Suppose an order-up-to level of 13 is used. What is the expected on-order inventory? (Round your answer to 4 decimal places. Use the Nomal distribution and Table 14.1 Use the round-up rule with Table 14,1.) c. Suppose an order-up-to level of 15 is used What is the in-stock probability? (Round your answer to 4 decimal places. Use the Nomal distribution and Table 14.1. Use the round-up rule with Table 14.1.) d. Suppose an order-up-to level of 15 is used. What is the stockout probability? (Round your answer to the nearest integer. Use the Normal distribution and Table 14.1 Use the round-up rule with Table 14.1.) e. Southern Fresh has decided to make a policy that every product will receive enough e. shelf space to ensure a 0.9 in-stock probability. What should the order up-to level be? TABLE 14.1 The Distribution Function, F(x), and the Inventory Function, I(z), for the Standard Normal Distribution Function

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